As a consultant working with retailers, one of the first
questions I ask a client is can they paint a picture for me of a
typical customer. Some clients can be very specific, whilst
others just give me a blank look, then follow it up by saying
everyone is a potential customer; how can they paint a picture
of a typical customer?
Alas, very few retailers can claim to have the whole of society
as a customer base, the rest of us have to target specific
consumer groups.
Historically, these groups were targeted based on their likes
and dislikes; this still is an important factor, but in the next
series of articles I would like to take you back a step further
and analyse the likes and dislikes of consumer age groups.
Market researchers split the population up into Spoodles
(Spoiled Toddlers), Pester Power (children), Generation Y (15 -
25 years olds), Generation X or IKEA babies (25-35 years olds),
The Jones Generation (35-49 year olds), Baby Boomers (50-65 year
olds) and Greying Tigers (65 year olds upwards).
As retailers we need to decide who are our target group and are
we merchanding displaying, promoting and providing the customer
service this group finds attractive and appealing.
In this series of articles we will analyse each group from a
retail perspective and offer ideas on how to grow your business
when targeting one of these groups.
Spoodles
To some people a Spoodle is a breed of dog and to others it is
the under 11s. The name Spoodles comes from Spoiled Toddlers and
is a name used by Walt Disney for one of its children's
restaurants.
The chain of parent's icon for Spoodles is David and Posh
Beckham, who are looked on as classic Spoodle heroes.
To the toy industry, Spoodles are the key target market, but the
key is that if you can keep young children happy, you can keep
their parents happy and happy parents spend more money.
In 2003, the world's biggest retailer identified the importance
of this group and introduced an exclusive range of infant wear
'Child of Mine'. One of the reasons for this was Wal-Mart had an
eye on the mother-consumer. Even so, Spoodles are worth $3
billion a year to Wal-Mart in their own right.
The challenge is to look at your own retail sector and to look
at the opportunities you have to attract the mother-consumer.
Spoodle Food
The organic food industry and locally sourced foods is a huge
growth sector and also receiving political attention in many
countries.
Rachel's Organic is a leading U.K. organic dairy manufacturer
and they recently launched organic yoghurts for toddlers.
The objective behind the marketing campaign is that if toddlers
are introduced to organic foods, they are more likely to become
adult organic food buyers with the pressure on child obesity,
organic health toddler foods may have an opportunity.
The Toy Market and Spoodles
Traditionally parents went to toyshops for toys, but that is all
changing. The current trend for electronic toys means the
electronic retailer is winning out over the traditional toy
retailer.
55% of many toy retailers income comes from the pre Christmas
buying frenzy; the toy industry is probably the most fashion
conscious sector of the retail sector. It is often governed by
what is coming out on the movies. Once the movie has done the
rounds, they toy is obsolete in the consumer's mind.
Spoodle Gardeners
The South African garden industry introduced Mulberry Bear as a
character to encourage Spoodles to become interested in
gardening. Many garden centres now have a children's garden
sector where they have a whole category of products aimed at
children.
Garden centres in South Africa and the USA have started
children's gardening clubs with the aim of getting gardeners
into the habit at an earlier age as possible.
Pester Power
The 8-14 year olds, the tweens rely on pester power to influence
their parents when it comes to shopping. This market in Canada
alone is worth $20 billion (Ref. Ropin the Web, Alberta Govt.
Summer 2004)
The main source of enjoyment for this age group is music, TV and
sports. This means as a retailer you need to think through some
key issues.
As the Alberta research emphasises:
1. Make sure your business is connected in some way with local
sports programmes that are heavily supported by this age group.
2. This age group has a green streak, therefore make sure you
have an environmental message you can get across to this group.
3. Sponsor school events, such as "Student of the Week",
"Athlete of the Year" or any other appropriate award.
4. Promote your business via S.M.S. This group will not see or
register your traditional adverts.
5. Relate your products to fundraising events wherever possible.
6. Look at fast food retailers and build into your offer
playgrounds, contests, games and other incentives.
7. If there is a company to closely watch when marketing to
tweens it is 'American Girl' Check out their web site at
www.americangirl.com
TV Does Have a Role
Why is it called pester power, look at the results of the
research carried out by Raising Kids in the U.K?
12% of parents think advertising to kids should be banned 30%
think adverts are a great tool to introduce kids to marketing
but
83% of parents have been pestered to buy a specific Christmas
toy 68% of parents have been pestered for snacks 30% of parents
have been pestered over a movie
If we reverse the coin, pester power is a highly successful
retail tool, especially as 30% of Australian parents take their
children shopping (Ref B&T 12 August 2005). Hence the success of
McDonald's Happy Meals. The kids and the parents buy.
How Pester Power Works
When my daughter was younger we fell into the pester power
market. In our location we had a choice of four garden centres
we could visit. Our daughter was adamant that we could only
visit one of them. When we challenged her why that one, the
response was they recognised her as a person and gave her a
flower.
You don't need a lot of money to capture the market; it's the
little things that make the difference. As a result of that
care, we are still loyal to Zanthorrea Nursery many years later.
About the author:
20 years experience in 15 countries. He regularly contributes to
retail magazines around the world and has authored several
successful marketing and retail books including the best seller
Just About Everything a Retail Manager Needs to Know.
www.johnstanley.cc
